Key Points
Supports structural reforms to mobilize domestic resources
Aims to improve public investment project efficiency
Promotes transparency and good governance in Bangladesh
Facilitates logistics sector reform to reduce trade costs
The purpose of the loan is to support Bangladesh in undertaking structural reforms supporting the mobilisation of domestic resources, efficiency of public investment projects, developing private sector, reforming state-owned enterprises, and promoting transparency and good governance.
"ADB's PBL (policy-based loan) promptly responds to Bangladesh's immediate development financing needs following the political transition," said ADB Regional Lead Economist Aminur Rahman. "ADB's program was developed in close collaboration with the International Monetary Fund, World Bank, and other development partners."
Bangladesh has been struggling with revenue mobilization, as it possesses the lowest tax-to-gross domestic product ratio in the world, ADB said in a statement dated January 11.
ADB believes the loan will help Bangladesh introduce key policy actions.
The loan also aims to facilitate policy and institutional reforms to promote a "whole of government" logistics sector reform to reduce the cost of trade and promote export diversification.
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